City of Palo Alto Utilities is offering incentives for their residential, commercial and industrial customers to install solar water heating systems on their homes and facilities with a goal of 1,000 new systems in the city by 2020. Incentives are based on the estimated energy savings. Single-family residential incentives are capped at $2,719 for gas-displacing systems and $1,834 for electricity or propane-displacing systems. Commercial installations are capped at $100,000.